Trump signs order to block Wall Street from buying single-family homes in bid to drive down rents

Core Points - President Trump signed an executive order to prevent Wall Street firms from purchasing single-family homes, aiming to enhance housing affordability for American families [1][6] - The order mandates federal agencies to draft new restrictions or revise existing rules regarding institutional purchases of single-family homes within 60 days [1][2] Group 1: Executive Order Details - The executive order is titled "Stopping Wall Street from Competing with Main Street Homebuyers" and emphasizes the need to preserve single-family home supply for families [1][2] - Trump instructed the Justice Department and the Federal Trade Commission to investigate large-scale acquisitions of single-family homes for potential antitrust violations, focusing on coordinated vacancy and pricing strategies by institutional investors [3][8] Group 2: Legislative Intent - Trump directed his administration to collaborate with lawmakers to draft legislation that would formalize restrictions on large institutional investors, indicating a desire for these limits to extend beyond his presidency [4] - Any proposed legislation would require congressional approval, potentially leading to a contentious debate in Congress regarding the federal government's role in the housing market [4][5] Group 3: Market Impact and Investor Presence - An analysis by CliftonLarsonAllen highlighted that a nationwide ban on acquisitions would necessitate congressional action, as executive action alone cannot establish such restrictions [5] - Despite their significant role in the housing market, large institutional investors own less than 1% of the nation's single-family housing stock, with firms owning 100 or more homes controlling this small percentage [9] - In the rental market, institutional investors account for only 2% to 3% of single-family rental homes, although their ownership is concentrated in specific fast-growing metro areas [10] - In 22 specific U.S. counties, institutional investors own between 5% and 10% of the housing stock, particularly in cities like Dallas, Houston, and Atlanta [11][12]